Ethereum ETFs Surge Ahead with Massive Inflows, Outpacing Bitcoin
By: Eliza Bennet
Recent developments in cryptocurrency exchange-traded funds (ETFs) have spotlighted Ethereum as a dominant force in the market. US-listed spot Ethereum ETFs amassed an impressive $523.9 million in net inflows on August 12, marking a significant streak of six consecutive days of inflow increases. According to data from SoSo Value, this figure is nearly eight times higher than the $66.32 million observed from Bitcoin ETFs on the same day.
Notably leading this surge, BlackRock’s ETHA attracted $318.67 million, while Fidelity’s FETH brought in an additional $144.9 million. Additionally, Grayscale's Ethereum Trust products accumulated over $54 million combined, and both 21Shares’ CETH and VanEck’s ETHV gathered more than $6 million in new investments each. The continuation of these capital inflows reflects Ethereum’s strengthening appeal relative to Bitcoin amongst investors and institutions alike.
On the preceding day, August 11, Ethereum ETFs had already set a single-day record by receiving over $1 billion in inflows. This robust momentum underscores an overwhelming interest in Ethereum-backed funds, which have reportedly drawn in around $2.3 billion over the last five trading days. Strategic ETH Reserve data shows that spot ETH ETFs currently hold more than six million ETH, a substantial asset under management worth approximately $29 billion, representing over 5% of Ethereum’s total market cap.
Conversely, Pantera Capital has decided to pivot towards opportunities beyond ETFs, investing $300 million into companies that manage crypto treasuries. Pantera’s leadership believe these digital asset treasuries (DATs) may outperform traditional crypto ETFs in the long run. According to Cosmo Jiang, Pantera’s general partner, and Erik Lowe, head of content, DATs are positioned to enhance net asset value per share by increasing token ownership over time more efficiently than mere spot holdings. They posit that the potential returns from holding a DAT could surpass those from ETFs or direct token ownership. This strategic move indicates Pantera’s anticipation of evolving opportunities within the crypto investment landscape.
